53. Adaptation of schedules in special cases. The following special instructions will apply in the situations indicated: Management funds and intragovernmental revolving funds. - Schedules for management funds (including "Advances and reimbursements") will follow the general format of exhibit 51D. Schedules will be required for intragovernmental revolving funds when specified by the Bureau of the Budget, and will also follow the format of this exhibit. An entry entitled "Advances and reimbursements" will follow the entries relating to new obligational authority (where applicable). For management funds, this entry will equal the sum of the entries relating to advances and reimbursements included on the "Operations and financing" schedule. For intragovernmental revolving funds, this entry will represent funds provided by operations and subentries may be used where a breakdown is significant. The first entry in the second section of the schedule will be "Gross expenditures." In the case of appropriation reimbursements the amount included for this entry will equal the amount included in "Advances and reimbursements" above. For intragovernmental revolving funds, this entry will represent funds applied to operations. Subentries may be used where a breakdown is significant. Capital transfers will follow the entries for gross expenditures. Applicable entries described in sections 51 and 52 will follow these entries in each section. An additional section, headed "Budget expenditures," will be included in these schedules, to show the computation of the net effect on budget expenditures. The following entries will be used: Gross expenditures Budget expenditures (out of receipts and bal- If a new budgetary authorization is provided for the fund in any of the 3 years, a distribution of expenditures, as indicated for public enterprise funds, will be required. Public enterprise funds. - Schedules for public enterprise funds will be required when specified by the Bureau of the Budget, and will follow the general format of exhibit 51E. The schedules will be headed "Budget authorizations and receipts, expenditures and balances," and the first section will be headed "Budget authorizations and receipts available." This section will contain information relating to "Receipts from operations," following the entries relating to new obligational authority, and preceding the entries for balances brought forward. The section on "Expenditures and balances" will set forth gross budget expenditures. Capital transfers, appropriately identified, will follow the entries for gross budget expenditures. The change in selected working capital will be reported as a separate item under "Receipts from operations," if a decrease, or under "Gross budget expenditures" if an increase (see section 57). "Receipts from operations" and "Gross budget expenditures" generally will be classified to distinguish capital and current items as indicated in section 57. Except where especially significant, major programs need not be itemized here. An additional section headed "Budget expenditures" will be included in these schedules, to show the computation of the net effect on budget expenditures. The following entries will be used: Gross budget expenditures Net budget expenditures [Identify types of authorizations other than ap- Allocations and allotments.--Schedules for allocations and allotments will be combined with the parent account, with transfers or payments and reimbursements between the parent account and allocations eliminated. No separate reporting of expenditures from allocation accounts is required. Reimbursements to be credited to a subsequent year's appropriation.-Unobligated balances as certified under section 1311 at the end of the past year which represent anticipated reimbursements to be credited to a subsequent year's appropriation will be excluded from the balances reported in this schedule. The amount thereof will be identified in a footnote reading: "NOTE.-19PY amounts exclude $ of unfilled orders from other accounts at end of year, which will become reimbursements of a subsequent year." Consolidated schedules. - In cases where two or more budgetary accounts are reported on a single schedule (except for "Advances and reimbursements"), new obligational authority and expenditures will be distributed by account title. Deposit funds. For purposes of preparing this schedule, all balances will be considered to be obligated. The entries will ordinarily consist only of the obligated balances at start and end of year expenditures on a net basis, and totals. 54. Guides for estimating expenditures. In the case of successive one-year appropriations, the percentage to be expended in the year in which the appropriation is made should not usually be estimated to exceed the average experience of the past 5 years. Expenditures in the second and third years similarly should be related to experience of the past 5 years. In the case of all other accounts, expenditures should be estimated conservatively after taking full account of time lags between obligations and deliveries and between deliveries and the issuance of checks in payment therefor. For the purpose of estimating expenditures from anticipated supplementals for the current year when included in the regular budget schedules, it will be assumed that the supplemental will be charged with a proportionate share of the total expenditures during the year for the purpose for which it is required. For example, if the supplemental is for pay increases, only the portion of the pay increase which is included on the current year pay rolls paid in the budget year will be reported as budget year expenditures. SUBMISSION OF ANNUAL BUDGET ESTIMATES BUSINESS-TYPE FINANCIAL STATEMENTS 56. Business-type financial statements, generally. Business-type financial statements will be submitted for: (a) All enterprises which are specifically required by the Government Corporation Control Act or similar legislation to submit such budgets. (b) All other revolving funds, except those "feeder accounts" which are solely available for making advances to other funds or accounts. (For the latter see section 60.) The basic business-type financial statements will be: a Statement of Sources and Application of Funds, including an analysis of the effect of the enterprise's operations on budget expenditures (statement A, section 57); a Statement of Income and Expense (statement B, section 58); and a Statement of Financial Condition (statement C, section 59). In addition certain other supplementary schedules will be included as outlined in section 60 below. These statements will be used in the printed budget in lieu of the statements described in sections 43 and 53 for these funds, unless specified otherwise by the Bureau of the Budget. Where the statements described in sections 43 and 53 are required, the statements here described must still be submitted, but will not be printed. In the latter situation, a brief "Condensed Statement of Income and Expense and Financial Condition" also will be required for printing. This condensed statement will set forth, in consolidated form, the data contained in statements B and C, described in sections 59 and 60 (and will include the appended tabulation set forth as item (g) of section 59). Both statements A and B are to show a program breakdown, where feasible. The breakdown will be the same on both statements and will agree with the narrative discussion. Where joint inventories or facilities are used for two or more programs, or where other technical factors make it difficult to follow the format prescribed herein, statements A and B may be presented on a consolidated basis for all programs. In these cases, a distribution of income and expense by programs will be presented in a subsidiary schedule, to be printed. Changes in the program breakdown as shown in the latest budget document must be approved in advance by the Bureau of the Budget. No program breakdown is required on statement C. The general form and content of the basic statements are prescribed below and shown in exhibits 57, 58, and 59. The statements will relate only to the revolving fund concerned, and will exclude deposit funds (6000 series accounts) and allocation accounts which the enterprise receives from other agencies. Unexpended balances of allocations to other agencies, if any, will be included as part of the cash balance of the revolving fund. The detailed itemization under the prescribed sections will be determined generally by those preparing the estimates. Care should be taken, however, not to itemize separately insignificant amounts or unnecessary details. It is essential that the differences in amounts for successive years for items in the statement of financial condition (statement C) should be reconcilable and easily identified with the amounts of transactions shown in statements A and B, except for "nonfund" transactions which are properly excluded from statement A. Also, all items shown in statement A which are shown in statement B should carry the exact stub and amount, and where feasible the items should follow the same order for easy identification. Bureau of the Budget representatives are available for consultation on preparation of the statements and schedules. 57. Statement of Sources and Application of Funds. A statement showing how the enterprise's funds were derived and the uses made of these funds, and the effect of these transactions on budget expenditures of the Government, will constitute statement A of the budget submission. Transactions shown on this statement are those which cause charges or credits to working capital, together with the exchange of another form of working capital for inventories for manufacture or sale. The statement will show actual figures for the past fiscal year, estimates for the current year, and estimates for the budget year, respectively. The statement will be arranged in the following sections and groups (see exhibit 57): To operations: FUNDS APPLIED Each major program (to be shown separately): Acquisition of assets Expense Undistributed Increase in selected working capital To financing: Decrease in investment of U. S. Government (itemize) Repayments of borrowings from the public SUBMISSION OF ANNUAL BUDGET ESTIMATES By operations: FUNDS PROVIDED Each major program (to be shown separately): Realization of assets Undistributed Decrease in selected working capital By financing: Increase in investment of U. S. Government (itemize) Borrowings from the public Decrease in investments in U. S. securities Decrease in cash with Treasury [and in banks] In addition to the grouping of items as indicated, the following rules will be observed: (a) Purchases for manufacture or sale will be shown under expense, instead of showing the cost of goods sold. The change in inventories for manufacture or sale will not be included in the figures relating to selected working capital. (b) Investments in U. S. Government securities and sales or redemptions thereof will be shown at par value in the financing sections. (c) Interest expense payable to the Treasury and interest income from U. S. Government securities will be listed as separate items under the expense and income headings respectively. (d) Adjustments applying to prior years that involve working capital will normally be shown on this statement as separate entries under income or expense. These entries are generally labeled "Adjustment of prior year expense" or "Adjustment of prior year income" and shall be identical with corresponding entries shown on statement B (under retained earnings, if excluded from operations). (e) The changes in selected working capital will generally cover all changes in working capital except cash with Treasury and in banks and inventories for manufacture or sale. (f) Reimbursable expense and the reimbursements therefor will be shown in this statement, even when they are excluded from statement B. (g) A heading for "Undistributed receipts" (or expenditures) will be used in those cases where there are two or more programs and a distribution cannot be made to the programs. Where there is only one program, items which are not properly identified therewith will be placed under a heading "Other receipts" (or expenditures). An analysis of "Budget expenditures" will be appended to the Statement of Sources and Application of Funds. It will show actual figures for the past year, estimates for the current year, and estimates for the budget year, respectively. The analysis will pick up the totals of the operations sections of the statement and indicate the net difference, as follows: Funds applied to operations When the financing section shows receipts from or repayments to budgetary authorizations (feeder appropriations, revolving funds available solely for advances to the enterprise, or authorizations to expend from debt receipts), the net expenditure or credit for the current and budget years will be distributed at the end of this schedule to show, first, the net amount charged or credited to the enterprise fund from budgetary authorizations, and second, the remainder (reflecting the net receipts or expenditures of the enterprise, after taking account of the amounts related to budgetary authorizations). The amounts shown here for budgetary authorizations must agree with the amounts shown as "Total transfers to revolving fund" on the schedule of analysis of transfers to revolving fund. 58. Statement of Income and Expense. A Statement of Income and Expense will constitute statement B of the budget submission. It will show actual figures for the past year, estimates for the current year, and estimates for the budget year respectively. Where the enterprise is engaged in two or more major programs, this statement should reflect separately the operating results of each such program. The statement will be arranged in the following sections (see exhibit 58): Income and expense: For each income section of the statement the income in the form of funds provided will be listed first, to agree with statement A, followed by income (if any) which is the amortization of long-term prepayments. For each section on expense, the general order of items will be as follows: Purchases for manufacture or sale, change in inven- Change in valuation allowances and operating re- The itemization and subtotaling on statement B will be arranged so that transactions which are common to both statements A and B will be found on statement B in the same amounts as on statement A. The entry for changes (increase or decrease) in valuation allowances and operating reserves will show the net difference between the balances in such accounts at the beginning and end of the fiscal year (other than changes which are treated as charges or credits to retained earnings), whether the amount is a minus or a plus. The final section of the statement will begin with the balance of retained earnings or deficit (-) at the beginning of each fiscal year and show the additions and/or deductions made during the year to arrive at the retained earnings or deficit (-) shown on the statement of financial condition at the end of the year. The itemization of adjustments should be sufficient to identify the nature of the transaction readily. Interest-bearing investment The stub entries should generally be descriptive of the items. Specifically the following rules will be observed: (a) Cash with Treasury [and in banks]-Include cash of revolving funds (4000 and 8400 series) on deposit with the Treasurer of the United States and in commercial banks. Balances shown for the year preceding the past year and the past year will agree with the amounts to be shown in the Treasury Combined Statement. Show separately from this item any cash on hand or in transit which is not reported as a part of the unexpended balance in the Treasury Combined Statement. (b) Accounts receivable-Include accrued interest receivable, unamortized premium (less discount) SUBMISSION OF ANNUAL BUDGET ESTIMATES on investments, and advances to contractors, agents, and employees, as well as regular accounts receivable. (c) Investments in U. S. securities-Investments in U. S. Government securities will be shown at par value. (d) Bonds, debentures, and notes payable Only borrowings from private interests will be shown in the liability section. Borrowings from the U. S. Treasury or other Government agencies will be shown separately in the section, "Investment of U. S. Government." In (e) The section on "Investment of U. S. Government" includes the bonds, notes, capital stock, paid-in capital or paid-in surplus, and appropriations provided through the United States Treasury or other Government agencies together with the enterprise's retained earnings or deficit. cases where interest is payable to the Treasury or other Government agency on capital investment items, without regard to earnings, the first subsection will be entitled "Interest-bearing investment." Those capital-investment items on which no interest is paid (even though dividends may be paid, when earned) will be shown by item in a second item group entitled "Non-interest-bearing investment." This latter group will show the retained earnings or deficit items under the caption "Retained earnings or deficit (-)." For those funds where the Government's investment is all non-interest-bearing, the "non-interest-bearing" side heading will be omitted. The item subgroup will show the "Principal of the fund" and "Retained earnings or deficit (-)." (f) Valuation allowances should be shown as deductions from the related assets. Reservations of retained earnings will be shown, properly described under "Retained earnings or deficit (-)." Operating reserves of a liability nature will be shown in the liability section of the statement. (g) An appended tabulation will show the total balance available for future expenditure for each of the balance sheet dates, the net obligations against them, and the residual balance that might be considered as unobligated. This will generally cover: Unexpended balance: Cash with Treasury [and in banks] Total unexpended balance Obligations other than liabilities Unfilled customers' orders (-) (used only for intragovernmental funds) Net obligations outstanding Unobligated portion of certain fund balances (unexpended balance less obligations) |